IRA Qualified Charitable Distribution Gifts
- The Qualified Charitable Distribution (QCD) qualifies toward the owner’s Required Minimum Distribution (RMD).
- The Qualified Charitable Distribution (QCD) is not included in the owner’s Adjusted Gross Income, so no taxes are owed on this gift.
- Is there a charitable tax deduction? There is not. The Qualified Charitable Distribution (QCD) allows the IRA owner to avoid paying income taxes that were deferred when the funds were initially deposited into the IRA. Normally, withdrawals from IRA’s are subject to income tax. However, Qualified Charitable Distributions (QCD’s) from IRA accounts are not considered taxable income to the donor; therefore, these gifts do not qualify as tax deductions.
- Gifts can NOT be made from 401(k) or 403(b) or other employer-sponsored retirement accounts. However, it may be possible to complete a tax-free transfer from these employer-sponsored retirement accounts into an IRA from which a charitable distribution may be made.
- Qualified Charitable Distributions (QCD) can NOT be used to establish Charitable Remainder Trusts, Charitable Gift Annuities or Donor Advised Funds.
▼▼A giving opportunity for those over the age of 70 ½
Federal legislation allows you to make Qualified Charitable Distributions (QCD) from your IRA directly to a qualified 501(c)3 charity, such as Ghost Ranch. This Qualified Charitable Distribution (QCD) is not recognized as taxable income, but may qualify as part or all of your annual Required Minimum Distribution (RMD).
Contact us to talk more specifically about options and benefits:
Director of Development
Thank you for considering this gift!
The gift descriptions are for informational purposes and are not legal or tax advice. To ensure that this gift fits your particular circumstances and planning, please consult with your professional advisers.